To ask Her Majesty's Government what plans they have to lay regulations that (1) define what a stable coin is, and (2) require particular (a) forms, and (b) levels, of collateral for such coins.
Answered on
24 May 2022
The legislation to bring stablecoins, where used as a means of payment, within the regulatory perimeter is expected to be part of the forthcoming Financial Services and Markets Bill announced in the Queen’s Speech on 10 May. The Bill will be introduced later in the session when parliamentary time allows.
As set out in the Government’s response document, with respect to stablecoins used as a means of payment, the government proposes that regulation should capture all stablecoins that reference fiat currencies, including a single currency stablecoin or stablecoin based on a basket of currencies.
The financial services regulators will be required to consult on rules associated with this legislation in due course, including on assets or funds backing the stablecoin where relevant.